The situation I have chosen to analyze is event number 3

the first example #3 and #4 are incorrcet. im submitting the problem again with blank boxes.

Classify each of the following accounting practices as conservative or aggressive. 1. Increase the allowance for uncollectible accounts. 2. When costs are rising, change from LIFO to FIFO. 3. Change from declining-balance to straight-line depreciation in the second year of an asset depreciated over 20 years.

do you want to improve the qualitative characteristics of your firms financial statements. Which of the following options would most likely improve the timeliness of your company's financial statements? 1. decreasing the useful life of property plant and equipment from 10 years to five 2. increasing the number of disclosures 3. increasing the frequency of statements from annually to quarterly 4. changing the timing of born revenues are recognized

Assume you are recently appointed as an accountant in a manufacturing firm. Your manager asked you to calculate the depreciation of a machinery which is expected to give output for the next 12 years. However, the management estimated that the current level of output will be maintained for 7 years after which it is not financially viable to use the machine. Management further believes that a more advance machine will be available in the market in next five years. Identify period that should be used in the determination of depreciation

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Identify if the following changes are an accounting policy change (P), an accounting estimate change (AE), or an error (E). Item • The useful life of a piece of equipment was revised from five years to six years. • An accrued litigation liability was adjusted upwards once the lawsuit was concluded. •  An item was missed in the year-end inventory count. •  The method used to depreciate a factory machine was changed from straight-line to declining balance when it was determined that this better reflected the pattern of use.  • A company adopted the new IFRS for revenue recognition.  • The accrued pension liability was adjusted downwards as the company's actuary had not included one employee group when estimating the remaining service life.  • The allowance for doubtful accounts was adjusted upwards due to current economic conditions.  • The allowance for doubtful accounts was adjusted downwards because the previous estimate was based on an aged trial balance that classified some…

AT & T company was depreciating its antennas over 20 years.  The total cost of the antennas accounted for 20 million dollars.  It was recently discovered that the antennas useful life is only seven years due to new technological development. With reference to the above scenario answer the following questions. What is the accounting implication in this situation and why? What promulgated Accounting Standards should be followed? Provide rationale. How and why should this discovery be recorded in the financial statements of the company?  If the company issues quarterly financial statements and the discovery is made in the third quarter, should this impact be shown prospectively or retroactively and in what specific time period?  As the accountant, what could you recommend to management and why?

(Accounting Changes) Aston Corporation performs year-end planning in November of each year before its calendar year ends in December. The preliminary estimated net income is $3 million. The CFO, Rita Warren, meets with the company president, J. B. Aston, to review the projected numbers. She presents the following projected information. Check the below image for projected information. The corporation has never used robotic equipment before, and Warren assumed an accelerated method because of the rapidly changing technology in robotic equipment. The company normally uses straight-line depreciation for production equipment.Aston explains to Warren that it is important for the corporation to show a $7,000,000 income before taxes because Aston receives a $1,000,000 bonus if the income before taxes and bonus reaches $7,000,000. Aston also does not want the company to pay more than $3,000,000 in income taxes to the government.Instructions(a) What can Warren do within GAAP to accommodate the…

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The management of "Scott" company decided to "beautify" the financial statements by changing the depreciation period of the equipment from 8 years to 15 years. What will be the effect of this change on the company's financial statements? A. Cash flow from current operations will increase. B. Net profit will decrease. third. Cash flow from investing activities will decrease. d. Net profit will increase. e. Answers A to D are incorrect.

Please do not give solution in image format ?

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In 2024, internal auditors discovered that PKE Displays, Incorporated, had debited an expense account for the $368,000 cost of equipment purchased on January 1, 2021. The equipment's life was expected to be five years with no residual value. Straight-line depreciation is used by PKE. Required: 1. Determine the cumulative effect of the error on net income over the three-year period from 2021 through 2023, and on retained earnings by the end of 2023. 2. Prepare the correcting entry, assuming the error was discovered in 2024 before the adjusting and closing entries. (Ignore income taxes.) 3. Assume instead that the equipment was disposed of in 2025 and the original error was discovered in 2026 after the 2025 financial statements were issued. Prepare the correcting entry in 2026. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Determine the cumulative effect of the error on net income over the three-year period from 2021 through 2023, and…

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Sound Audio manufactures and sells audio equipment for automobiles. Engineers notified management in December 2024 of a circuit flaw in an amplifier that poses a potential fire hazard. An intense investigation indicated that a product recall is virtually certain, estimated to cost the company $2 million. The fiscal year ends on December 31. Required: 1. Should this loss contingency be accrued, only disclosed, or neither? 2. What loss, if any, should Sound Audio report in its 2024 income statement? 3. What liability, if any, should Sound Audio report in its 2024 balance sheet? 4. Prepare any journal entry needed. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Req 1 to 3 Req 4 Prepare any journal entry needed. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions (i.e., 10,000,000 should be entered as 10). 1 No Event 1 General…

The Thompson Corporation, a manufacturer of steel products, began operations on October 1, 2019. The accounting department of Thompson has started the fixed-asset and depreciation schedule presented below. You have been asked to assist in completing this schedule. In addition to ascertaining that the data already on the schedule are correct, you have obtained the following information from the company's records and personnel: (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)   Depreciation is computed from the first of the month of acquisition to the first of the month of disposition. Land A and Building A were acquired from a predecessor corporation. Thompson paid $792,500 for the land and building together. At the time of acquisition, the land had a fair value of $70,400 and the building had a fair value of $809,600. Land B was acquired on October 2, 2019, in exchange for 2,800 newly issued shares of…

Differential Analysis for Machine Replacement Proposal Franklin Printing Company is considering replacing a machine that has been used in its factory for 4 years. Relevant data associated with the operations of the old machine and the new machine, neither of which has any estimated residual value, are as follows: Old Machine Cost of machine, 10-year life Annual depreciation (straight-line) Annual manufacturing costs, excluding depreciation Annual nonmanufacturing operating expenses Annual revenue Current estimated selling price of the machine New Machine $109,300 10,930 38,000 11,300 95,800 36,600 Cost of machine, 6-year life Annual depreciation (straight-line) $135,600 22,600 17,500 Estimated annual manufacturing costs, exclusive of depreciation Annual nonmanufacturing operating expenses and revenue are not expected to be affected by purchase of the new machine. Required:

In 2024, internal auditors discovered that PKE Displays, Incorporated, had debited an expense account for the $356,000 cost of equipment purchased on January 1, 2021. The equipment's life was expected to be five years with no residual value. Straight-line depreciation is used by PKE. Required: 1. Determine the cumulative effect of the error on net income over the three-year period from 2021 through 2023, and on retained earnings by the end of 2023. 2. Prepare the correcting entry, assuming the error was discovered in 2024 before the adjusting and closing entries. (Ignore income taxes.) 3. Assume instead that the equipment was disposed of in 2025 and the original error was discovered in 2026 after the 2025 financial statements were issued. Prepare the correcting entry in 2026. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine the cumulative effect of the error on net income over the three-year period from 2021 through 2023, and on…

For this problem I kept getting a few numbers wrong. Please look at picture titled "Accounting Question" for the table I'm suppose to input the answers to. The problem is asing for: 1. Compute depletion and depreciation on the mine and mining equipment for 2021 and 2022. The units-of-production method is used to calculate depreciation. (The expected format for rounding is presented in the appropriate rows of the table. Round your final answers to nearest whole dollar.)

The company founder hires us as consultants and asks that we oversee the accounting for new equipment purchased on January 1. The founder wants to know the implications of different depreciation methods and estimates for the company’s financial statements. Those statements will be used to attract financing from new investors and creditors. At the end of the equipment’s first year in operation, we are given the following Tableau Dashboard. 1(a). Assume the company uses straight-line depreciation for the equipment. At the beginning of the second year, we determine that the equipment has only two more years of remaining useful life. Compute the equipment’s book value at the end of its first year.1(b). Assume the company uses straight-line depreciation for the equipment. At the beginning of the second year, we determine that the equipment has only two more years of remaining useful life. Compute the depreciation for the second year given the revised useful life estimate.2. At the end of…

Tuscan Inc. had a retained earnings balance of $60,000 at December 31, 2018. During the year, Tuscan had the following selected transactions. Calculate the retained earnings balance at December 31, 2019. ∙ Reported net income of $100,000. ∙ Revised an estimate of a machine’s salvage value. Depreciation increased by $1,000 per year. ∙ An error was discovered. Three years ago, a purchase of a building was incorrectly expensed. The effect is understated retained earnings of $12,000 (net of tax benefit). ∙ Paid cash dividends of $33,000.

For each of the following independent scenarios, determine if each event is an accounting change, error, or neither. For each accounting change or error determine the method that should be used to account for the change or error in the current year financial statements: retrospective adjustment, prospective, or prior period adjustment. Change from LIFO to FIFO Inventory Method. - NEITHER Change in useful life of equipment from 10 years to 7 years. Accounting Error Change in depreciation method from Double Declining Balance to Straight Line. Write-down of inventory due to obsolescence. Settlement of lawsuit and receipt of damages from 5 years prior. Write-off of patent due to competing product. Prior year costs were recorded as expenses instead of Property, Plant and Equipment. Change in Allowance for Uncollectible Accounts due to increase in unpaid Accounts Receivable, changes estimate from 4% of credit sales to 6%.

Samuels Manufacturing is considering the purchase of a new machine to replace one it believes is obsolete. The firm has total current assets of $921,000 and total current liabilities of $645,000.As a result of the proposed​ replacement, the following changes are anticipated in the levels of the current asset and current liability accounts noted.   Account Change Accruals +$44,000 Marketable securities 0 Inventories −14,000 Accounts payable +94,000 Notes payable 0 Accounts receivable +151,000 Cash +15,000   a. Using the information​ given, calculate any change in net working capital that is expected to result from the proposed replacement action.   b. Analysis of the prucchase of a new machine reveal and Increase or Decrease in the working capital? Is the increase or decrease treated as an intitial outlay and is a cost of acquiring the new machine.   c. Would the change in net working capital enter into any of the other cash flow…

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Samuels Manufacturing is considering the purchase of a new machine to replace one it believes is obsolete. The firm has total current assets of $927,000 and total current liabilities of $648,000. As a result of the proposed​ replacement, the following changes are anticipated in the levels of the current asset and current liability accounts noted.   Account Change Accruals +$43,000 Marketable securities 0 Inventories −13,000 Accounts payable +86,000 Notes payable 0 Accounts receivable +151,000 Cash +12,000   a. Using the information​ given, calculate any change in net working capital that is expected to result from the proposed replacement action.   b. Explain why a change in these current accounts would be relevant in determining the initial cash flow for the proposed capital expenditure.   c. Would the change in net working capital enter into any of the other cash flow components that make up the relevant cash​ flows? Explain.

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Atomic Corporation has a June 30th year end. It has used straight line depreciation on its reactor since its purchase for $912,800 January 1, 2018 based on expectations of a ten year life.  No salvage value was estimated. At the beginning of the fiscal year of July 1st, 2022 , management realized that that the reactor life was in reality only 4 years. This is considered a change in accounting estimate and you are asked to solve it. Required 1: What is the amount of Depreciation Expense reported for the year ended June 30th, 2022?  $  Required 2: What is the amount of Depreciation Expense to be reported for the year ended June 30th, 2023?  $  Required 3: What is the amount of Accumulated Depreciation that is retroactively recognized on July 1st 2022 when the remaining useful life is re-estimated?  $  Required 4: What is the Net Book Value of the reactor on June 30th, 2022?  $  Required 5: What is the Net Book Value of the reactor on December 31st, 2022?  $  Required 6: What is the Net…